Hartford Business Journal

HARTFORDBUSINESS.COM | FEBRUARY 24, 2025 5 Deal Watch A rendering of 1 Market St., a 91,568-square-foot office building currently under construction at The Corbin District development in Darien. CONTRIBUTED RENDERING 'A Better Option' Amid broader market struggles, here's why one developer is building over 100,000 sq. ft. of new office space in this CT town sion-makers. They want to give their people a better option." Further, the additional office space will increase Darien's tax revenue without creating a significant draw on municipal resources, Genovese said. "Office space also creates an employee base downtown, attracting workers who will shop, dine and exer- cise locally in the stores, restaurants and fitness studios we are incorpo- rating into the project," he said. 'Miniature' Greenwich Much of the office space Baywater Properties is building in Darien has already been pre-leased. Tenants have signed on to occupy 72% of the 91,568 square feet of space in an office building under construction at 1 Market St., which is expected to be completed next year. They include investment firms Balance Point Capital Advisors (15,000 square feet), Crestwood Advisors (5,500 square feet) and Janney Montgomery Scott (7,500 square feet); business consulting firm McKinsey & Co. (12,000 square feet); and professional services firm Aon (26,000 square feet). Notably, McKinsey is relocating from Stamford and will bring with it about 220 employees. Another small office building on-site will have 14,400 square feet. Overall, The Corbin District's $165 million second phase — which began construction last July — will feature 11 new buildings, including the office space, 112 apartment units and 78,810 square feet of retail space. The $30 million first phase, which was completed in spring 2023, included three mixed-use buildings along Corbin Drive with 38 apart- ments and about 23,000 square feet of retail space — all of which has David Genovese, CEO of commercial property developer Baywater Properties, points to a parking garage under construction within The Corbin District. HBJ PHOTO | MICHAEL JULIANO By Michael Juliano HBJ Contributor T he pandemic ushered in a work-from-home trend that has caused office building vacancies to soar in many cities and towns, but that doesn't scare Darien commercial property developer David Genovese. The CEO of Baywater Properties will grow Darien's office space footprint by 22% as a result of his mixed-use development called The Corbin District. The project, which is being built on 7 acres downtown between Inter- state 95 and the Darien train station, is about six months into a second phase that will add 105,968 square feet of new class A office space. Genovese says he's making a big bet on the office market in one of Connecticut's wealthiest suburbs because he's confident that busi- nesses will eventually require workers to return to the office. "I personally don't believe that permanent work-from-home work- place strategies work," he told the Hartford Business Journal. "It's very hard to mentor young people, it's very hard to create and sustain culture over time if everyone is distributed and working from home." Companies are increasingly pushing employees back into the office post-pandemic. At the same time, some businesses are willing to pay top dollar for new class A space that offers fresh amenities and prox- imity to restaurants, shops and train stations, Genovese said. "It's a much more pleasant pedes- trian experience," he said. "That's the message we keep hearing from corporate CEOs and real estate deci- FAIRFIELD COUNTY OFFICE MARKET SNAPSHOT INVENTORY 37.5M sq. ft. VACANCY RATE 29% 2024 NET ABSORPTION* -385,074 sq. ft. TOTAL LEASING ACTIVITY IN 2024 1.8M sq. ft. AVG. ASKING RENT (PER SQ. FT.) $34.37 * Net absorption is the amount of space that was leased in 2024 minus the amount of space that was vacated. | Source: Cushman & Wakefield

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